For the first time in more than a year my model is calling for a fully invested position. Last week's market decline was enough to turn the valuation indicator just barely neutral. Sentiment also improved to the best level since near the bottom in 2009. Earnings continue to show a tiny positive bias. I should point out that the rally my model is forecasting could be short lived. Any price increase will likely turn my valuation indicator negative again and earnings expectations could easily go neutral or even negative if global economic weakness spills over into the US. Nevertheless, we will take it as it comes and hope this is just a correction - not the beginning of a bear market.